Germany will mandate e-invoicing for all companies in 2025.

From January 1st, 2025, all companies operating in Germany will be required to send and receive only electronic invoices, as part of the ViDA initiative aimed at modernizing and harmonizing the VAT system in the European Union. This move is expected to improve efficiency, save costs, and reduce the environmental impact of traditional paper invoicing.

Under the new regulation, the e-invoicing platform selected by the sender of the invoice will carry out content checks, format conversion and testing, extraction of reporting data from the e-invoice, transmission of reporting data to the state platform, and transmission of the e-invoice to the recipient's e-invoicing platform. This centralized platform will help streamline invoicing procedures and reduce errors and delays associated with manual processing.

Feedback on a discussion draft from the Federal Ministry of Finance is currently being sought from important business associations until May 8th, 2023. These details will be incorporated into the draft if necessary, and final legislation is expected to be published in due course.

Companies are advised to prepare for the expected deadline by adjusting their accounting processes accordingly. This includes upgrading their accounting software to enable e-invoicing and ensuring that all relevant stakeholders are informed about the changes. The German government has emphasized that the transition to e-invoicing should be smooth and gradual, with appropriate support and guidance provided to help businesses adapt.